Buying property is one of the best ways to invest your money if you've got extra to go around. Property often gives returns as a form of passive income, while also open to appreciation over time. There are also chances of depreciation, but this doesn't happen suddenly. You can always see it coming a mile away and cut your losses.
Investing in pre-sale units are slightly different from your your typical process of investment in property.
Firstly, pre-sale units are condo units that aren't yet completed, but are on sale. You broker a deal and buy them while they are still in the construction stage - and sometimes when it is nothing but a design on paper. This might look like it has all the cards stacked against the investor, but it isn't.
In Vancouver, the process is run in such a way that it protects both the buyer and the seller’s rights.
How is it done?
Investors who want to purchase a pre-sale unit meet up with a developer who is selling his yet unbuilt condo suites. The price is negotiated and the buyer pays a deposit of 10 -15% at once. He then pays the remainder of the full purchase price over the course of the construction.
The investor has a period of 7 days after reaching an agreement with the seller to change his mind. If he doesn't, then he begins to pay the money in a trust, held by a lawyer. The money would be paid to the seller on completion of the unit.
With a pre-sale investment in Vancouver units, there's zero need to pay for maintenance fees, or monthly mortgage payment.
You are sure to be getting a new unit on the completion of the property by the contractor. This guarantee isn't there when you wait to buy already completed units. This is because you might be unable to find such an opportunity.
After purchasing a pre-sale unit, as the owner, you can request certain changes to be made to your own unit. This is a privilege you don't get when you buy pre-sale units.
Advantages of Buying Pre-sale Units in Vancouver
With a pre-sale unit, you don't have to pay down a heavy first deposit which might be as high as $200,000. Your first deposit is as little as 5%, or as high as 10%.
With a new property, you can be sure that maintenance costs (when they come which might be a good couple years away), wouldn't cost much. Compared to a resold unit, the cost of repairs and maintenance could dig a nice little trench in your expenses.
Buyers of a pre-sale unit get a new building and a new building warranty to go with it. This warranty insurance can last anywhere from 2-10 years.
The advantages of buying pre-sale units in Vancouver weigh much less when compared to the disadvantages. If you can, make a pre-sale investment today.